Taxing 'Grey' Products-Market-Based Instruments

Abstract

Taxing production of and consumption of 'grey' products (antithetical to 'green' products) is quite likely in view of the deteriorating environment and increasing awareness and clamour for sustainable environment in developing countries. The concept and practice of market-based-instruments (MBIs), which can help in mitigating the environmental pollution, is discussed in this article, which also brings together experiences of some developed and industrialised nations in implementing MBIs.